Bangladesh signs US$1b arms contract with Russia

Russian President Vladimir Putin yesterday met the prime minister of Bangladesh for talks that included the signature of a US$1 billion arms contract, the Asian nation's biggest since its 1971 independence.

Bangladesh has recently been expanding its defence capabilities, building a new air base close to neighbouring Myanmar and adding frigates to its navy.

"Our countries intend to expand their military and technological cooperation," news agencies quoted Putin as telling Bangladeshi Prime Minister Sheikh Hasina during a Kremlin ceremony.

"Russia will extend Bangladesh a credit of US$1 billion, which will be spent on the purchase on Russian weapons and military technology," the Russian leader said.

The arms purchase agreement included orders for armoured vehicles and infantry weapons, air defence systems and Mi-17 transport helicopters, a source close to Russia's state arms export agency told the Vedomosti business daily.

The source said the purchase did not include any tank orders because Bangladesh had earlier obtained those from China.